Commenting on the Government's Q4 house building figures released today, RICS spokesperson Gillian Charlesworth said: "The current financial crisis is making it almost impossible for developers to get the loan finance needed to deliver the UK's housing needs for the future. If the current downward trend continues the Government will be on target to build less than one third of the two million new homes needed by 2016.
“Compounding this is the current lack of mortgage finance for buyers, meaning developers are reluctant to commit to projects which may end up attracting nothing but a for sale sign. The Government must take immediate action to ease restrictions on lending and work with the Homes and Communities Agency to increase development through Housing Associations. Failure to do this will result in serious undersupply problems both now and in the future."
